Basingstoke ObserverTHE Government’s Help to Buy scheme, designed to help first-time buyers secure a new home with just a 5% deposit, will end in March 2023.
So, with just 10 months left to take advantage, what do house hunters need to know?
Tilia Homes sales director, David Thomas explained: “The Help to Buy equity loan scheme, in all its variations, has proven hugely popular with the latest data revealing that more than 346,000 homes have been purchased since its inception. The updated version was launched last year and aims to help first-time buyers in England access affordable mortgages by allowing them to borrow up to 20% of the value of the property, or up to 40% in London, on an interest-free loan for the first five years. We’re proud to offer Help to Buy at the majority of our developments and have handed over the keys to many first-time homeowners since its inception.”
For those who are interested in owning a brand new home using a Help to Buy mortgage, there are certain criteria which must be met. They need to be over 18 and a first-time buyer, meaning they cannot own, or have ever owned, a home or land in the UK or abroad. Also, they cannot have had any form of Sharia mortgage or have inherited a property. If they are married or co-habiting, they will need to make a joint application, and the property must be their only residence.
David continued: “Since Help to Buy ISAs closed for new applications in November 2019, the equity loan scheme remains one of the best ways for first-time buyers to get on the property ladder as it lessens the obstacle of saving a sufficient deposit. Many of the UK’s biggest and well-known lenders have committed to offering mortgage products for the remainder of the scheme’s duration so house hunters can be assured of choice and certainty.
However, as the closing date draws nearer, we anticipate a steep rise in demand. Those looking to buy their first home with the benefits of Help to Buy will need to act decisively.”
Legal completions on properties being purchased with Help to Buy must meet the deadline of 31 March 2023.
